Signet Jewelers (SIG, Financial), the largest diamond jewelry retailer globally, reported impressive Q4 results and provided encouraging guidance for 1Q26 and FY26. Despite weak Q4 guidance in January due to poor holiday sales, the company exceeded expectations for Q4 EPS and comparable sales, driven by a sales rebound in January.

• In January, SIG lowered its Q4 revenue and same-store sales outlook, noting a consumer shift towards lower price points, resulting in a -2% decline in holiday comps. Consequently, SIG revised its Q4 comp outlook to -2.0% to -2.5%. However, by expanding its product range and benefiting from improved bridal trends, SIG achieved Q4 comps of -1.1%, surpassing expectations.
• CEO J.K. Symancyk, who took over last September, highlighted the continuation of positive trends into 1Q26, with growth across all categories. SIG's Q1 guidance includes a comp increase of +2.0% and adjusted EBITDA between $94-$106 million.
• Mr. Symancyk also launched the "Grow Brand Love" strategy, focusing on new product styles and designs to boost growth in self-purchase and gifting categories, while strengthening the bridal segment. SIG plans to optimize its real estate by moving over 10% of mall locations to off-mall sites and expanding its e-commerce channel.
• However, SIG's FY26 EPS, revenue, and same-store sales guidance were below expectations at the midpoint, reflecting a cautious stance due to the ongoing cautious consumer spending environment.

Following a challenging holiday season, SIG saw sales improve in January, especially in the bridal market, leading to a positive outlook for the current quarter.